Today, Diamond Sports, the parent company of Bally Sports RSNs, announced a deal a deal that will allow it to exit bankruptcy. With this deal, Amazon will become a minority investor in Diamond Sports, the owner of Bally Sports. This deal will see Amazon become the new home of Bally Sports streaming for direct-to-consumer packages.
“We are thrilled to have reached a comprehensive restructuring agreement that provides a detailed framework for a reorganization plan and substantial new financing that will enable Diamond to operate and thrive beyond 2024. We are grateful for the support from Amazon and a group of our largest creditors who clearly believe in the value-creating potential of this business. Diamond’s near-term focus will be on implementing the RSA and emerging from bankruptcy as a going concern for the benefit of our investors, our employees, our team, league and distribution partners, and the millions of fans who will continue to enjoy our broadcasts.” Said David Preschlack, CEO of Diamond Sports.
This deal with Amazon will let Americans buy live access to MLB, NBA, and NHL games through Amazon’s Prime Video channels. This offer is only good for customers who live inside the markets these teams play with.
Also, with this deal, Sinclair agrees to pay Diamond Sports $495 million and continue to provide ongoing management and transitional services. This will end the ongoing lawsuit between the two companies.
With this deal, Diamond Sports has also reached a deal over the Bally Sports naming rights. Per the deal Bally Sports can continue to use its current name through the 2024 MLB season at no cost. After the end of the 2024 MLB season, its naming rights deal will end with Bally ending the partnership to name the RSNs Bally Sports.
This deal is supported 85% of the Company’s first lien debt holders, over 50% of the Company’s second lien debt holders, and over 66% of unsecured bondholders. This deal is subject to the judge’s approval, allowing Bally Sports to exit bankruptcy.
Correction: We updated the story to clarify that Amazon is an investor in Diamond Sports Group to get streaming rights.